The Types Of Coverage in General Liability for Protection


General liability insurance is typically something any new business should check into. With so many risks of lawsuits, medical expenses arising from injury or damage on the business property, and claims of slander or libel that can come up (even through the form of advertising), a business owner has to be prepared to have the business protected should any of these claims or suits arise.

When purchasing general liability insurance, a business owner will find that the policy can usually be purchased on an occurrence coverage form, or a claims made coverage form.

The occurrence coverage form generally offers better protection, but can also be more expensive than the claims made coverage form.

The reason for this is that the occurrence coverage form protects against lawsuits that may arise for any of the reasons mentioned above, as long as the policy was active when the injury or damage occurred.

Conversely, the claims made coverage form protects against such lawsuits only when the policy was active when the injury or damage occurred and the policy was active when the claim was made.

This means that if a business misses a payment, fails to renew, or otherwise lets the insurance policy lapse between the time of injury or damage and the time the claim is made, they would not be covered or protected under a claims made coverage form.

For this reason, it’s crucial to evaluate the price difference in purchasing an occurrence coverage form insurance policy, and to make a wise decision when purchasing.